Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

SIRXIND006 Mapping and Delivery Guide
Review retail business fundamentals

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency SIRXIND006 - Review retail business fundamentals
Description
Employability Skills
Learning Outcomes and Application This unit describes the performance outcomes, skills and knowledge required to access organisational information and conduct research to understand the fundamentals of retail financials and operations. This unit applies to individuals working in a diverse range of retail sectors and business contexts. No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Skills must be demonstrated in a service industries environment. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

relevant documentation:

retail organisational strategy

retail profit and loss statement

retail merchandise strategy

retail merchandise performance data.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.
Prerequisites/co-requisites
Competency Field Working in Industry
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Determine the commercial structure of a retail business.
  • Access and review a retail business strategy to determine organisational direction and priorities.
  • Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.
  • Identify internal and external factors impacting retail performance.
  • Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.
  • Review key internal and external factors impacting on retail performance.
       
Element: Research retail leasing arrangements.
  • Research the rental costs and terms of a retail lease.
  • Identify costs, initial and ongoing, of establishing a retail space.
  • Calculate the profit required to cover the cost of establishing a retail space.
  • Calculate the breakeven point in terms of the lease duration.
  • Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.
       
Element: Review retail inventory processes and structures.
  • Access and review a retail merchandise strategy to determine organisational merchandise objectives.
  • Identify key financial metrics considered in merchandise management.
  • Review organisational structure of categories, sub-categories and product ranges.
  • Review organisational processes for inventory purchasing and management.
  • Identify internal and external factors impacting product performance.
  • Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.
       
Element: Research the retail customer.
  • Review organisational target market and target market profit.
  • Identify strategies to engage the target market and opportunities to enhance customer experience.
  • Identify the role and value of customer service teams in engaging the retail customer.
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENTS

PERFORMANCECRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine the commercial structure of a retail business.

1.1. Access and review a retail business strategy to determine organisational direction and priorities.

1.2. Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.

1.3. Identify internal and external factors impacting retail performance.

1.4. Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.

1.5. Review key internal and external factors impacting on retail performance.

2. Research retail leasing arrangements.

2.1. Research the rental costs and terms of a retail lease.

2.2. Identify costs, initial and ongoing, of establishing a retail space.

2.3. Calculate the profit required to cover the cost of establishing a retail space.

2.4. Calculate the breakeven point in terms of the lease duration.

2.5. Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.

3. Review retail inventory processes and structures.

3.1. Access and review a retail merchandise strategy to determine organisational merchandise objectives.

3.2. Identify key financial metrics considered in merchandise management.

3.3. Review organisational structure of categories, sub-categories and product ranges.

3.4. Review organisational processes for inventory purchasing and management.

3.5. Identify internal and external factors impacting product performance.

3.6. Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.

4. Research the retail customer.

4.1. Review organisational target market and target market profit.

4.2. Identify strategies to engage the target market and opportunities to enhance customer experience.

4.3. Identify the role and value of customer service teams in engaging the retail customer.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

review a retail business's strategy, structure and profitability to determine:

business objectives

breakeven point and profitability

internal and external factors impacting on performance

identify costs of establishing a new retail store, including:

store design

fitout

stock

legal and accounting

security

point of sale equipment

bank guarantee

recruitment and training

marketing

review the following retail merchandise performance and document a report on merchandise performance:

profit margins

sell-through rates

inventory stock holding

sales per square metre

research the target market of a retail organisation and document strategies to engage the target customer.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

role of a retail strategy and common retail objectives

role of a merchandise strategy and common merchandise objectives

retail profit and loss statements:

role

key metrics:

sales

gross profit

net profit

cost of goods sold

expenses:

fixed

variable

key commercial elements of a retail business strategy:

sales turnover

profit

investment in inventory

investment in retail space

common retail organisational structures and roles and responsibilities of key functions:

operations

marketing

warehousing

stores

buying

planning

visual merchandising

common costs and considerations associated with establishment of a retail space:

leasing costs

bank guarantee

design costs

fit-out costs

utilities

stock

equipment

recruitment

staff training

marketing

legal

leasing agreements and terms

key internal and external factors impacting retail productivity and performance

value of retail product at cost and retail

organisational merchandise structure:

categories

sub-categories

ranges

key retail financial metrics considered in merchandise management:

sales

gross profit

sell-through

rate of sale

average sale price

unit sales

markdown percentage

sales plan

principles of inventory management and performance

key considerations in managing physical retail environments:

sales targets

store presentation standards

service standards

stock holding

promotion strategies

team structure.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENTS

PERFORMANCECRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine the commercial structure of a retail business.

1.1. Access and review a retail business strategy to determine organisational direction and priorities.

1.2. Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.

1.3. Identify internal and external factors impacting retail performance.

1.4. Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.

1.5. Review key internal and external factors impacting on retail performance.

2. Research retail leasing arrangements.

2.1. Research the rental costs and terms of a retail lease.

2.2. Identify costs, initial and ongoing, of establishing a retail space.

2.3. Calculate the profit required to cover the cost of establishing a retail space.

2.4. Calculate the breakeven point in terms of the lease duration.

2.5. Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.

3. Review retail inventory processes and structures.

3.1. Access and review a retail merchandise strategy to determine organisational merchandise objectives.

3.2. Identify key financial metrics considered in merchandise management.

3.3. Review organisational structure of categories, sub-categories and product ranges.

3.4. Review organisational processes for inventory purchasing and management.

3.5. Identify internal and external factors impacting product performance.

3.6. Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.

4. Research the retail customer.

4.1. Review organisational target market and target market profit.

4.2. Identify strategies to engage the target market and opportunities to enhance customer experience.

4.3. Identify the role and value of customer service teams in engaging the retail customer.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Access and review a retail business strategy to determine organisational direction and priorities. 
Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions. 
Identify internal and external factors impacting retail performance. 
Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations. 
Review key internal and external factors impacting on retail performance. 
Research the rental costs and terms of a retail lease. 
Identify costs, initial and ongoing, of establishing a retail space. 
Calculate the profit required to cover the cost of establishing a retail space. 
Calculate the breakeven point in terms of the lease duration. 
Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity. 
Access and review a retail merchandise strategy to determine organisational merchandise objectives. 
Identify key financial metrics considered in merchandise management. 
Review organisational structure of categories, sub-categories and product ranges. 
Review organisational processes for inventory purchasing and management. 
Identify internal and external factors impacting product performance. 
Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin. 
Review organisational target market and target market profit. 
Identify strategies to engage the target market and opportunities to enhance customer experience. 
Identify the role and value of customer service teams in engaging the retail customer. 

Forms

Assessment Cover Sheet

SIRXIND006 - Review retail business fundamentals
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SIRXIND006 - Review retail business fundamentals

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